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Prestwich and Whitefield Property Update January

Prestwich and Whitefield Property Update January
Hello and welcome to the first of our property blogs dedicated to the Prestwich and Whitefield Property Market.

I am the owner of Philip Ellis Estate and Lettings in Whitefield. Each month we will share with all the owners and landlords in our area what is happening in our very own property market.

Whitefield Homeowners Have Made an Annual Profit Of £9,661 Since the Millennium

Looking back over 2018 it is safe to say the housing market in Whitefield was definitely quieter than the previous 2 years and I can see this continuing into 2019.

Owning property is a medium to long term investment so, looking at the long-term, the average homeowner in Whitefield who has owned their property since the Millennium, will have seen its value rise by more than 318%.

As we all know house prices are a national obsession and tied into the overall health of the UK economy. While some of the gain has come purely from growth in Whitefield property values, some of it will have come from extending, modernising or developing their home.

Take a look at the different property types in Whitefield, and the profit made by each type – it makes interesting reading.

However, we must remember that there has been just over 60% inflation over those 18 years, which eats into the “real” value (or true spending power of the profit). so if we take into account inflation since 2000, the true spending power has been lower.

So the “real” value of the profit, after inflation, in Whitefield has been £5,898 per year.

What I’m trying to show you is that even though we had the 2008/09 credit crunch property market crash where, depending on the type of property, values dropped between 15% and 20% in 18 months, however Whitefield homeowners over the long term are still better off than those renting.

Going forward the main question is –

what will happen to future of the Whitefield property market? Regardless of what is happening in the World, Europe or even Central London, the biggest factor over the medium to long term to ensure that the level of growth is maintained in Whitefield is the building of new homes both locally and nationally. Whilst we haven’t had the 2018 stats yet, Government sources suggest this will be nearer 180,000 to 190,000, a decrease from 2017 of 217,350 new homes being created. In order to meet demand we need to build 240,000 homes to equal demand, otherwise before long demand will outstrip supply, unless the Government start to spend billions building council houses – this trend will continue for decades.

Another factor to consider is that although landlords in Whitefield have been hit by higher taxes, most still intend to increase their portfolio in the medium to long term. Youngsters in the area see renting as a choice as it provides flexibility, options that being tied to a home cannot give. This means demand will continue to grow and landlords will enjoy increased rents and capital growth. Even with the tempering of house price inflation in Whitefield in 2018, most buy-to-let landlords (and homeowners) are still sitting on a copious amount of growth from previous years.

Since the 90’s making money from investing in buy-to –let property was easy. Looking forward, with all the changes in the tax regime and balance of power, making the same level of returns won’t be as easy. Over the past 10 years the role of the forward thinking agent has changed from a person collecting rent to a more all-inclusive role. Thankfully there are a handful of local agents who are great at landlord portfolio strategy and can give you a balanced structured overview of your short, medium and long-term goals. If you would like some advice then please speak to your current agent or feel free to drop me a line.

For more information, get in touch with the best estate agents Whitefield has to offer today!


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